VKA SOLUTION: About GST

Thursday 24 August 2017

About GST

What are the components of GST?

There are 3 applicable taxes under GST: CGST ,SGST , IGST !

CGST: Collected by the Central Government on an intra-state sale (Eg: Within Karnataka)

SGST: Collected by the State Government on an intra-state sale (Eg: Within Karnataka)

IGST: Collected by the Central Government for inter-state sale (Eg: Karnataka to Tamil Nadu)

In most cases, the tax structure under the new regime will be as follows:

Transaction

New Regime

Old Regime

Sale within the State

CGST + SGST

VAT + Central Excise/Service tax

Revenue will be shared equally between the Centre and the State

Sale to another State

IGST

Central Sales Tax + Excise/Service Tax

There will only be one type of tax (central) in case of inter-state sales. The Center will then share the IGST revenue based on the destination of goods.

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Transaction	New Regime	Old Regime
Sale within the State	CGST + SGST	VAT + Central Excise/Service tax	Revenue will be shared equally between the Centre and the State
Sale to another State	IGST	Central Sales Tax + Excise/Service Tax	There will only be one type of tax (central) in case of inter-state sales. The Center will then share the IGST revenue based on the destination of goods.